US30 Analysis in Elliott Waves - Anticipated Correction ScenarioUS30 Analysis in Elliott Waves - Anticipated Correction Scenario :
Fibonacci extensions. This level often signals a potential reversal point, suggesting that a significant correction may be approaching in the short term.
We anticipate a possible correction towards Fibonacci levels, around 23% to 38% of the third wave. The end of this third wave has also formed an ending diagonal, reinforcing the likelihood of a pause or reversal in the trend.
Awaited Confirmation Signals
To confirm the potential for a correction, several technical signals are in place:
Divergences on MACD and RSI: A bearish divergence is present on these indicators, indicating a weakening of bullish momentum and increasing the likelihood of a trend reversal.
Break of the Trend Line: Although the market is still in an uptrend, the break of this trend line would provide final confirmation of the end of the third wave and the start of a deeper correction. Monitoring this break is crucial before entering short positions.
Price Action: On the weekly chart, a Bearish Engulfing pattern has already been observed, further supporting potential sell signals.
Price Targets
First Target (TP1): 38,418, a key support zone expected to serve as the initial correction target.
Second Target (TP2): After a minor bullish correction, we could aim for the 33,735 area as the final target of this downward phase.
After this anticipated correction, we’ll reassess the market to look for new buying opportunities if the bullish trend resumes.
Dowjons
US30 DOWJONSE 4H Technical review ** stop lose for 1st short is half of 1st target
targets and stop lose are clear on chart
This is not an investment recommendation or any call to buy or sell
It is just an analysis based on a study of the history of price action
Behavior , that may not be a necessarily reason for the success of
the structure or repetition. So please make your decision based on your vision .
To protect capital and manage your deals and trading successfully
the maximum loss in each transaction for the same currency or
commodity in the same direction should not exceed ( 2% ) of the capital .
Good luck >>